Credit Cards Should Not Be Used for Crypto Transactions, Taiwan’s Financial Watchdog Says – Regulation Bitcoin News

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Credit Cards Should Not Be Used for Crypto Transactions, Taiwan’s Financial Watchdog Says – Regulation Bitcoin News
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According to local media, Taiwan’s financial regulator has asked local banks to not allow card payments in transactions involving cryptocurrencies. Authorities say these assets are risky and the associated cash flows are difficult to monitor.

Taiwanese regulator urges banks to disallow use of bank cards for cryptocurrency-related payments

According to a report published by business news portal UDN, Taiwan’s Financial Supervisory Commission (FSC) has informed credit card issuers and banks to effectively prevent their customers from using credit cards as payment instruments for cryptocurrency-related transactions.

The regulator cited the latest crypto market downturn and ongoing concerns about money laundering risks associated with virtual assets, which it also described as highly speculative and extremely volatile.

Financial industry sources said the FSC made its appeal in a letter to the Taiwan Bankers Association in early July. This week, authorities neither denied the news nor initially commented. Later, it confirmed to Forkast that it had asked credit card institutions not to sign up crypto service providers as merchants.

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The committee insisted that credit cards should be used as a means of payment for consumption rather than financial investments and speculative transactions, and gave card acquirers three months to comply with the new rules. The FSC also drew attention to a previous requirement to prohibit the use of credit card payments in transactions related to stocks, futures and options.

Despite the latest anti-money laundering (AML) rules applied to service providers in the market last summer, Taiwan’s crypto industry remains largely unregulated. The country has yet to finalize a project to issue a central bank digital currency (CBDC).

In June, Taiwan’s central bank completed a series of technical simulations in a closed-loop environment as part of an ongoing prototype trial of a retail digital currency. However, the head of the monetary authority acknowledged that the bank could take another two years to complete work on the CBDC, twice as long as expected.

tags in this story

bank card, bank, card issuer, card, CBDC, commission, credit card, crypto, crypto market, crypto transaction, cryptocurrency, cryptocurrency, digital currency, Financial Supervisory Commission, FSC, regulation, regulator, restriction, restriction, rule, Taiwan, Taiwanese, watchdog

Do you expect Taiwan to impose other restrictions on crypto-related transactions in the future? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons

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